MKT 3501 CHAPTER 7

Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods

Geographic Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

Market Segmentation

4 major steps in designing a customer value-driven marketing strategy

Market Segmentation; Market Targeting; Differentiation; Positioning

Evaluating each market segment's attractiveness and selecting one or more segments to serve

Market Targeting

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer

Undifferentiated (Mass) Marketing

Dividing a market into different age and life-cycle groups

Age and Life-Cycle Segmentation

Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product

Behavioral Segmentation

Dividing the market into segments according to the different benefits that consumers seek from the product

Benefit Segmentation

An advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices

Competitive Advantage

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

Concentrated (Niche) Marketing

Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

Demographic Segmentation

If men and women respond similarly to the same marketing​ mix, they do not constitute​ distinct, identifiable segments. Gender would not be an effective base for segmentation in this example because the segments are not​ __________.

Differentiable

A market-coverage strategy in which a firm targets several market segments and designs separate offers for each

Differentiated (Segmented) Marketing

Actually differentiating the market offering to create superior customer value

Differentiation

Dividing a market into different segments based on gender

Gender Segmentation

Symbols such as the​ McDonald's golden​ arches, the colorful Google​ logo, the Nike​ swoosh, or​ Apple's "bite​ mark" logo provide strong company or brand recognition and are indicative of​ ________ differentiation.

Image

Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds​ $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows​ a(n) ________ segmentation approach.

Income

Dividing a market into different income segments

Income Segmentation

Tailoring brands and marketing programs to the needs and preferences of individual customers

Individual Marketing

Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries

Inter-Market (Cross-Market) Segmentation

There is a growing segment of people who want food that tastes good and is also good for them. This​ healthy-living segment represents which segmentation​ base?

Lifestyle

To be useful, market segments must be? (5 things)

Measurable; Accessible; Substantial; Differentiable; Actionable

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

Micromarketing

Which value proposition is the most difficult to sustain in the long​ run?

More For Less

________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs.

More For More

Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item

Occasion Segmentation

​________ shows consumer perceptions of a​ company's brands versus competing products on important buying dimensions.

Perceptual Positioning Maps

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Positioning

A statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference)

Positioning Statement

The way a product is defines by consumers on important attributes - the place it occupies in consumers' minds relative to competing products

Product Position

Dividing a market into different segments based on lifestyle or personality characteristics

Psychographic Segmentation

Stores such as​ Walmart, Best​ Buy, PetSmart,​ David's Bridal, and DSW Shoes use​ ________ positioning.

Same For Less

In evaluating different market segments, a firm must look at what 3 factors?

Segment size and growth; Segment structural attractiveness; Company objectives and resources

A set of buyers who share common needs or characteristics that a company decides to serve

Target Market

What is the overall purpose of​ differentiation?

To create superior customer value

The full positioning of a brand - the full mix of benefits on which it is positioned

Value Proposition